That was the message yesterday from Andrea Auerbach, a managing director with Cambridge Associates, in a presentation at the SuperReturn US conference. She said that Cambridge puts the current private equity overhang at approximately $425 billion, which is 3.5x higher than the overhang at this time in 2000. Moreover, that mammoth figure represents 54% of all capital commitments made between 2004 and 2009.
Over 85% of the $425 billion is in funds larger than $1 billion, including 48% in funds larger than $5 billion.
Considering how many firms claim to be starved for cash, it appears that the PE market might be bifurcating into the have-nots and have-too-muches.
Below is a quick video interview I did with Auerbach at SuperReturn: